(Bloomberg) -- OpenAI is on pace for $3.4 billion of annual revenue, Chief Executive Officer Sam Altman told the company’s staff, according to a person familiar with the matter.

Most Read from Bloomberg

• What to Know About the Deadly Flesh-Eating Bacteria Spreading in Japan

• Stocks Rise After Solid US Industrial Production: Markets Wrap

• Citi Pitches Money-Moving ‘Crown Jewel’ as Central to Revamp

• Flesh-Eating Bacteria That Can Kill in Two Days Spreads in Japan

• These Are the World’s Most Expensive Cities for Expats in 2024

In an all-hands meeting Wednesday, Altman said the vast majority of that revenue — about $3.2 billion — comes from OpenAI’s products and services, according to the person, who spoke on condition of anonymity to discuss internal communications. Altman said OpenAI is also on track to generate about $200 million by offering access to its AI models through Microsoft Azure, the person said.

The Information was first to report the revenue figure. The outlet previously reported that annualized revenue was $1.6 billion in late 2023.

OpenAI declined to comment.

OpenAI has emerged as a driving force in the development of AI, thanks to the viral success of ChatGPT, which helped kick off the frenzy around generative AI. Earlier this year, OpenAI completed a tender offer valuing the startup at $86 billion.

In recent months, OpenAI has been working to boost revenue from its AI products by selling services to enterprise customers. OpenAI has also begun training a more powerful AI model that could help it stay ahead of a growing number of well-funded rivals who are vying for the same users and businesses.

This week, the startup hired Sarah Friar, the former chief executive of neighborhood social networking service Nextdoor Holdings Inc., to serve as its chief financial officer, a role that has gone unfilled at the fast-growing artificial intelligence firm for two years. Friar will help OpenAI continue to invest in AI research while growing its global business, the startup said.

--With assistance from Rachel Metz.

Most Read from Bloomberg Businessweek

• Google DeepMind Shifts From Research Lab to AI Product Factory

• Online Shopping Has Become a Giant Fake Product Machine

• Coke—and Dozens of Others—Pledged to Quit Russia. They’re Still There

• Trump’s Planned Tariffs Would Tax US Households, Economists Warn

• Documents Show How Musk’s X Plans to Become the Next Venmo

?2024 Bloomberg L.P.